The aussie has reached the top of a rising channel which may provide resistance and push the exchange rate back down towards the monthly pivot at 1.0375. For the bearish case to gain any credence, however, I would want to see a move below the 1.0435 lows. Another possibility is that the aussie could rise higher with the trend-line at 1.0655 providing an upside target, however, a rally above the recent daily key reversal at 1.0580 would be added confirmation for such a move.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst